Informal sector plays an important role in reducing urban unemployment. In developing countries like Ethiopia, the informal sector absorbs the majority of the urban unemployed growing labor force. Therefore, this study was conducted to explore the opportunities, challenges and copping mechanism of women involving in traditional coffee making business in Bahir Dar City. The study followed qualitative case study design and data collection method. For this purpose, by inclusion and exclusion criteria 10 individuals for the in depth interviewees, 7 FGD and 7 KII were purposively selected at Gish Abay, Fasilo and Tana sub cities to represent Bahir Dar city. The result revealed that, the majority of women engaged in roadside coffee making business in Bahir Dar city were young. The main good opportunities of traditional roadside coffee for women engaged with own business were income generation, psychological satisfaction, socio-economic benefits and others opportunities like job creation as it requires less initial capital and being able to work anywhere in the available free space. Although their income depends on the number of customers, the location, their approaches, the way of traditional coffee service delivery, this business is the best option to generate more income as compared to their previous works and occupations. So far they develop humble self confidence now as compared with their previous work, habits and situations. Self employments give freedom and independence for women engaged in roadside traditional coffee making business in the study area. This business is not only coffee drink services but also a source of tremendous information to women and clients. Women involved in road side coffee making have a tremendous role to maintain the traditional heritages of coffee ceremony. On the other hand, they have faced many problems and challenges related to economic, social, administrative, and health that affects the potential of roadside traditional coffee business. Women working coffee on the street try to overcome the problems in different ways and strategies accordingly. Among the solutions are accepting and not counting it as a problem, negotiation and saving to manage most of their social, economic and administrative issues. Medical diagnosis and self hygiene were used for most of their health related problems. Moreover they used new technology and additional income earning activities to enhance income for living expenses and savings. Women who work in roadside traditional coffee should look attractive and retain their clients. Respective governmental as well as non-governmental organization should support women in the areas of capacity building to maintain the cultural values of traditional coffee ceremony. The study suggests that there were various rumors about women working in roadside coffee; therefore, it needs specific study in relation to the spread of HIV and prostitution in relation to these women. Keywords: Business,